By
Derek Hamilton
October 06, 2025
Earlier this summer we wrote about the One Big Beautiful Bill (OBBB) Act’s impact on business taxes. The legislation lowered taxes for companies that increase investment in the US by allowing immediate expensing of equipment, production facilities, and research and development (R&D).
Most businesses pay taxes on a quarterly basis. The OBBB Act was signed into law on July 4, 2025, and was made retroactive, meaning any qualified investments made since January of this year would be eligible for full expensing. In the latest reporting of companies’ quarterly tax payments by the US Treasury Department, payments are meaningfully lower compared with the past few years (chart below), reflecting the expensing of investments made year to date. This implies the OBBB Act is already having an impact on corporate profits.
Going forward, we continue to expect companies to take advantage of the new tax provisions by increasing investment in factories, equipment, and R&D. This should further boost corporate profits and add an additional boost to economic growth in 2026.
US corporate tax payments
Sources: Macquarie, Macrobond, US Treasury Department.
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